BENGALURU: The Bruhat Bengaluru Mahanagara Palike (BBMP) will take longer to free KR Market complex from the grip of the bank. The reason?
KR market is one of the BBMP’s most expensive properties, worth around Rs 800 crore, and the civic body does not have the required amount to claim the property back immediately.
KR Market is one of the five mortgaged properties against which BBMP had taken a loan. The other properties are Dassappa Hospital building, Public Utility Building, BBMP - East office and Kalasipalya Market.
BBMP officials are in talks with State Bank of India to recover at least three of the five mortgaged properties in the coming months.
“Talks are on to find out which is the least expensive property that can be recovered immediately. A guarantee that Rs 288 crore will be paid by April 2020 is also being given. We have been told that recovering KR Market will not be possible now,” a senior BBMP official said.
KR Market complex is one of BBMP’s prime properties along with corporation head office and Jayanagar shopping complex.
“Talks are on to get back at least Utility Building and Kalasipalya Market, so that rejuvenation and maintenance work can be taken up,” the official added.
BBMP also wants to recover its properties quickly so that it can improve its image and get receive sufficient funds from the World Bank and JNNURM to undertake projects.
“No mortgaged properties only means that the corporation is financially sound and can take up projects and tie-up with international companies and funding organisations. It will also improve BBMP’s rating among other corporations,” he said.
BBMP had mortgaged 11 properties to various banks such as Housing Development and Corporation Limited (HUDCO) and Karnataka Urban Infrastructure Development and Finance Corporation (KUIDFC) to raise Rs 1,632 crore in loans in 2011- 12, so as to meet capital expenditures.
Over the years it has paid most of it, and is now left with Rs 463.63 crore to get back its five mortgaged properties.
BBMP transferred the loan from other banks to State Bank of India, and during April- May, it paid an outstanding amount of Rs 237.99 crore.
“Now, with half the amount cleared, we have the option to recover three of the five mortgaged properties,” the official said.